Too often, family business owners get so occupied with putting out fires in their business that they lose sight of what they ultimately wanted to accomplish. Eventually, as your business grows you may find that your personal goals have changed.
Do you ever stop to reevaluate and adjust your personal goals and priorities? Let's examine some key concerns of many entrepreneurs.
To begin with, business owners need to refocus on their personal finances and building wealth. Most business owners are so focused on their day-to-day activities, that they unintentionally overlook the need to address their own finances. This commonly happens when most of their liquid assets are invested in the business. But, in order to attain financial independence, it is essential to put personal savings at the forefront. By having periodic financial reviews and then following up on them when necessary, you will increase your chances of financial prosperity.
A second issue for most entrepreneurs is planning for retirement. Business owners and their employees are eligible for many tax-qualified retirement plans, like simplified employee pensions (SEPs) or 401 (k) plans. The size of the organization and the age and salaries of the employees, must be taken into consideration to assess which retirement plan is best to choose. Also, nonqualified plans offer selective benefits for owners and their most valued employees.
A third consideration is developing an exit strategy. Will your small business be marketable if and when you decide to sell? It is essential to develop an "exit"strategy that can help provide cash commensurate with the value of your operation in the event you choose-or are forced (due to death or disability)-to pass on the business.
You must also decide if you desire to keep your business within the family. The business, like most others, may be a tight-knit business that is controlled by several family members. If your continuation plan consists of keeping the business in the family, it is essential to understand how the plan affects your income taxes and estate taxes.
As your enterprise develops and matures, it is critical that you maintain focus on your individual objectives and make sure they meet your current needs. By annually assessing and adjusting your individual objectives, you can be assured that both your personal and business agendas agree with each other.
Do you ever stop to reevaluate and adjust your personal goals and priorities? Let's examine some key concerns of many entrepreneurs.
To begin with, business owners need to refocus on their personal finances and building wealth. Most business owners are so focused on their day-to-day activities, that they unintentionally overlook the need to address their own finances. This commonly happens when most of their liquid assets are invested in the business. But, in order to attain financial independence, it is essential to put personal savings at the forefront. By having periodic financial reviews and then following up on them when necessary, you will increase your chances of financial prosperity.
A second issue for most entrepreneurs is planning for retirement. Business owners and their employees are eligible for many tax-qualified retirement plans, like simplified employee pensions (SEPs) or 401 (k) plans. The size of the organization and the age and salaries of the employees, must be taken into consideration to assess which retirement plan is best to choose. Also, nonqualified plans offer selective benefits for owners and their most valued employees.
A third consideration is developing an exit strategy. Will your small business be marketable if and when you decide to sell? It is essential to develop an "exit"strategy that can help provide cash commensurate with the value of your operation in the event you choose-or are forced (due to death or disability)-to pass on the business.
You must also decide if you desire to keep your business within the family. The business, like most others, may be a tight-knit business that is controlled by several family members. If your continuation plan consists of keeping the business in the family, it is essential to understand how the plan affects your income taxes and estate taxes.
As your enterprise develops and matures, it is critical that you maintain focus on your individual objectives and make sure they meet your current needs. By annually assessing and adjusting your individual objectives, you can be assured that both your personal and business agendas agree with each other.
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